Spot trading involves exchanging one currency or commodity for another of equivalent value in cryptocurrency as well as general financial instruments trading. The currency procured comes with full ownership rights, it can be withdrawn, transferred or resold. The quantity of cryptocurrencies owned from a spot trade doesn’t change with the ups and downs of the market; its value, on the other hand, floats with the market.
Making a profit in spot trading is unidirectional. Profit can only be made on price gains of the cryptocurrency bought - Buy low, sell high.
On the order hand, margin trading allows traders to buy more than their balances allow by borrowing traders the required funds to buy lot sizes or open positions in the market. Referred to as leverages, these tools can multiply a trader's capacity to enter the market by multiples even up to a hundred (100x) or more. This greatly increases the profit size scooped out of the market if the position opened was a right bet of the market direction. Margin trading, allows trader make profit in both market directions.
Unfortunately, it also multiplies losses if the bet is wrong. The trader could lose all of his balance if the market moves in the opposite direction of the bet to hit a price referred to as the liquidation price.